Map Shows How US and Canada’s Energy Grids Connect

Ontario Premier Doug Ford said that he would cut off energy to the U.S. “with a smile on [his] face,” if President Trump goes through with his tariffs threat.

Trump has announced that he will be implementing 25 percent tariffs on Canadian goods, and if he does so and Ford follows through on his promise, several American states could see their energy exchange with Canada interrupted.

Why It Matters

Trump has cited fentanyl coming in from Canada as the reason for tariffs. He has also said that the measures are needed to put a stop to what he calls trade imbalances between the nations.

The president has long used tariffs and the threat of them as a tool in trade with foreign nations. If Ford follows through on his threatened response, some energy imports could cease to come in from Canada as well.

What To Know

According to research from the Center for Strategic and International Studies (CSIS), the energy trade between the U.S. and Canada is worth $95 billion annually, and makes up between 5 percent and 15 percent of GDP in several states.

According to the U.S. Energy Information Administration (EIA), electricity between the two nations is intertwined through “a complex and highly interconnected power system,” and the major Canadian electricity companies have trading divisions and subsidiaries within the U.S.

The EIA stated: “For the better part of two decades, Canada has exported significantly more electricity to the United States than it imported. However, in the fall of 2023, electricity trade between the two countries became more balanced.” This was due to droughts affecting Canada’s hydro power and lower gas prices in the U.S.

Ford has control over Ontario’s power grid, meaning he can have influence over the Ontario Hydro One plant. This plant helps to supply energy to America’s East Coast, Southern, and Midwest states, with the exception of Texas. These states are also supplied by plants in Manitoba and Saskatchewan, however, Ontario’s plant is considered to be a larger player than the other two.

Additionally, per the EIA, 59 percent of all crude oil imported into the U.S. in 2019 came from Canada. So energy imports give Canada a powerful lever to hit back at the Trump administration in a way that could raise prices and stoke inflation in the U.S.

Ford, who was recently reelected, has been vocally anti-tariff since Trump announced them a month ago. He has already ordered for all Ontario liquor stores, which are owned by the province, to pull American liquor from their shelves.

Now, he is saying he will go “dollar for dollar” with the U.S., and has indicated a willingness to cancel a deal he had with White House adviser Elon Musk’s Starlink company.

What People Are Saying

Ford in a press conference: “If they want to try to annihilate Ontario, I will do anything — including cutting off their energy — with a smile on my face…They need to feel the pain. They want to come at us? We’ve got to go back twice as hard.”

The White House: “President Donald J. Trump is proceeding with implementing tariffs on Canada and Mexico under the International Emergency Economic Powers Act (IEEPA) to combat the extraordinary threat to U.S. national security, including our public health posed by unchecked drug trafficking … President Trump continues to demonstrate his commitment to ensuring U.S. trade policy serves the national interest.”

Klaus Adam, Professor of Economics at University College London told Newsweek: “A general reorientation away from the U.S. will take place now no matter what.”

What Happens Next

Whether Ford follows through on his threat remains to be seen. It is unclear how he would actually decouple Canadian energy from the American grid, given they are so intertwined. Meanwhile, Canadian Prime Minister Justin Trudeau has issued retaliatory tariffs against the United States.